Business

Dairy co-op job losses an 'unmitigated disaster'

The union representing Murray Goulburn workers has accused the dairy co-operative of being greedy.

The co-operative says it will slash 300 jobs, or 12 per cent of its workforce, to boost competitiveness and deliver higher farm-gate prices.

The company has processing plants in Cobram, Kiewa, Koroit, Leongatha, Rochester and Maffra and Edith Creek in Tasmania.

About 40 jobs are expected to go at Leongatha, 15 at Maffra and another 19 transport jobs will be shed across Gippsland. Twenty jobs will be lost at the Koroit plant.

Tim Kennedy from the National Union of Workers says it is a callous decision that will devastate regional communities.

"This is a highly profitable company," he said.

"It's one of the main players in the dairy industry in this country and a very competitive player on the international scene.

"We don't believe that taking out these ... [jobs] is anything more than really a push for fatter profits.

"They [the workers] are the bedrock on which ... the vibrancy and the prosperity of these towns run off and to take these jobs out of these facilities, out of these towns, is an unmitigated disaster and one that we don't believe is fundamentally necessary."

'Overdue'

Murray Goulburn shareholder and Nathalia dairy farmer, Ian Cobbledick, says he is thankful the co-operative is becoming more efficient.

"From time to time, I think all companies need a good review about their operating performance and also their operating structures," he said.

"As I said, I believe this one is long overdue and I'm very, very pleased that I'm actually seeing some action where it counts both in the plants and their efficiencies but also in the strategies of the company.

"I think there's been efficiencies that have been able to be achieved in the workplace that haven't been achieved over a long period of time that I'm pretty thankful that our new CEO Gray Helou is achieving those things now."

Survival

The Victorian Farmers Federation (VFF) says Murray Goulburn has been forced to shed jobs to ensure its survival.

It says the co-operative is under pressure from the high Australian dollar, the carbon tax and the supermarket price wars.

The VFF says it will hold Murray Goulburn to its promise to keep all sites open and take all suppliers' milk.

'Disappointing'

Agriculture Minister Peter Walsh says the jobs cuts are disappointing but accepts they were necessary to keep the company competitive.

"It's very, very disappointing when any jobs are lost but I suppose the challenges that Murray Goulburn face that are a major exporter out of Victoria ... they have to remain competitive on the international stage," he said.

The Liberal Member for Murray, Sharman Stone, says it is critical to keep the affected families living in northern Victoria.

"We just hope that we can find retraining for these staff if that's what's going to help them stay in our area or perhaps there's other prospects for them to change from being transport drivers or admin workers or factory workers or some other type of jobs," she said.

In a statement, the company says all processing sites will remain open and the changes will not affect production.

You have no doubt been hearing a lot about the Paris Agreement and know that it pertains to climate change, but are too embarrassed at this stage to ask for an overall explanation of what it's all about.